Builder's Risk

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What is Builder's Risk Insurance?

Builder's Risk Insurance is also referred to by those in the insurance industry as Course of Construction (COC) insurance. This specialized insurance is intended to insurance to insure structures while they are under construction. Materials, fixtures and appliances which are intended to become an integral part of the structure being built are also insured.
This insurance is also suitable for additions or alterations to existing buildings.
Note: the building being renovated is not insured in this instance. Only the additions or alterations to the building are insured.

What does Builder's risk Insurance cover?

Insurance is provided for loss resulting from accidental direct physical damage to the structure under construction. These policies usually provide broad coverage with few exclusions, but generally exclude damage caused by earth movement, including earthquake and flood.
Some Builder's Risk policies limit coverage to physical damage caused by specific named perils such as fire, lightning, windstorm, and theft. These perils are specifically listed in the policy.

Who is eligible for coverage?

The policy can be issued to the building owner, contractor, or the owner and contractor jointly.

When does coverage cease?

Coverage normally ceases when the insureds interest in the property ceases, when the building is accepted by the purchaser, or when the policy expires, whichever occurs first. Some policies, for an additional premium, may extend coverage beyond the expiration date. Coverage always ceases when the policy is canceled.
Unless the policy expressly specifies otherwise,coverage generally ceases when the building is occupied, in whole or in part, or put to its intended use, or 90 days after construction is complete.